Question

this is a project management class

1. What type of cost does not depend on the size of a project?

2. What is expedited cost? Support your answer with at least three examples.

Answer 1

Fixed costs do not depend on the size of the project. They do not change with the volume or scale of production. Some of the semi variable costs like depreciation cost do not change with size of project. Examples of fixed cost are rent, monthly salaries, etc. Even if there is no output in a month, rent and salaries has to be provided.

Expedite fees are fees added to the normal fee to speed up the process and shorten the time period of delivery of contract or service.

example 1 - While the usual time for receiving of passport is 6-8 weeks, expedited process takes 2-3 weeks at an additionl fee of 60 USD.

example 2 - The extra charge for overnight service provided by postal/courier agencies. The charge for first calss mail is 0.55 USD for upto 13 oz, whereas priority mail costs a flat rate of 7.5 USD upto 70 lbs.

example 3 - City of Tacoma charges 45% additinal charge on permit fee for expedited building permit review.For an 8 week review such as a BLDCN which takes 8 weeks is completed in 4 weeks under expedited review..